Development Strategy of the Bank

The development strategy of House Construction Savings Bank of Kazakhstan JSC until 2023 (hereinafter - the Development Strategy) was designed in accordance with the Law of the Republic of Kazakhstan dated August 31, 1995 No. 2444 "On Banks and Banking Activities in the Republic of Kazakhstan", Law of the Republic of Kazakhstan dated December 7, 2000 No. 110 - II "On Housing Construction Savings in the Republic of Kazakhstan", the regulatory legal acts of the Republic of Kazakhstan and the National Managing Holding "Baiterek" JSC (hereinafter - NMH "Baiterek"), the Charter and internal documents of the Bank. The Development Strategy was approved by the Bank’s Board of Directors on December 22, 2017 (Minutes of Meeting No. 17).

With the approval of the Development Strategy, the long-term strategy of House Construction Savings Bank of Kazakhstan JSC for the years 2014-2023 has lost its validity. The need to update the Bank's strategy was due to the following reasons:

1) participation in the implementation of a State programmes: National Programme for Infrastructure Development "Nurly Zhol" for 2015 - 2019, approved by the Decree of the President of the Republic of Kazakhstan dated April 6, 2015 No. 1030; Housing construction programme "Nurly Zher", approved by the Decree of the Government of the Republic of Kazakhstan dated December 31, 2016 No. 922;

2) mainstreaming the Development Strategy of the NMH "Baiterek" for 2014-2023 (approved by the Decree of the Government of the Republic of Kazakhstan dated June 1, 2017 No. 331);

3) adjustment of the main indicators of social and economic development forecast for the Republic of Kazakhstan for 2018-2022;

4) emphasis in the Bank's future activities on client-oriented approach, including on the quality of customer service, the sale of products through agent network, online and cross-selling, while taking into account changes in market situation;

5) adjustment of a long-term indicators and development trends of the Bank taking into account the achieved results in the period from 2014 to 2016.

The Development Strategy took into account the following strategic and policy documents:

1) Strategic development plan of the Republic of Kazakhstan until 2025;

2) Forecast of social and economic development of the Republic of Kazakhstan for 2018-2022;

3) Strategic Plan of the Ministry for Investment and Development of the Republic of Kazakhstan for 2017 - 2021;

4) The Housing construction programme "Nurly Zher",

5) The National Programme for Infrastructure Development "Nurly Zhol" for 2015 – 2019

6) Development Strategy of the NMH "Baiterek" for 2014-2023.

According to the structure and format of the presentation, the Development Strategy corresponds to the State and international methodological recommendations on formation (drafting) the development strategies, as well as methodological recommendations for the drafting, harmonization, approval and monitoring of development strategies of the subsidiary organizations of the NMH "Baiterek".

In addition, there were studied all available strategic documents of Kazakhstani and Russian large banks prior to the formation of updated Development Strategy of the Bank.

Mission

The mission of the Bank reflects the Bank's purpose, its positioning and determines the strategic meaning of the Bank's activities, as well as for society and for the State as a whole. The mission of the Bank is:

" Providing the own housing for Kazakhstani families and increasing the sense of Homeland".

Vision

The current vision of the Bank represents the direction of business development and the expected state in a long-term future:

" In 2023 we are stable, high-tech, client-oriented, socially important bank, developing principles of housing construction savings system and actively involved in execution of State programmes, focused on development of housing construction in order to provide housing to general public. ".

Strategic goals

Strategic goals by the end of 2023:

- Increase the share of housing construction savings system participants in total economically active population to 17%;

- Increase the share in a mortgage market to 36%;

- Transfer of 70% of customer service operations to online regime through the introduction of advanced technologies and automation of the Bank's operations.

The key strategic objectives of the Bank in the framework of its mission are:

Strategic objective 1.

Popularization of housing construction savings system among the population, exposure to external markets.

Strategic objective 2.

Permanent improvement of products and services, including in the framework of social State programmes.